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Well-Being Inequality And The Economic Crisis: Evidence From Life In Transition Surveys In Eastern Europe

Listed author(s):
  • Alina Botezat

    ()

    (Romanian Academy, Gh. Zane Institute for Economic and Social Research)

  • Livia Baciu

    ()

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi)

This paper examines the relationship between well-being inequality and the economic crisis for countries from Central and Eastern Europe. Using data from Life in Transition Surveys waves 2006 and 2010, we assess the level of happiness gap by computing the instrument-effect-corrected standard deviation. Our results indicate that the dispersion in self-reported well-being levels increased after the economic crisis in all considered countries. We also show that the life satisfaction variation is not necessarily higher for those who report being poor compared to those from the upper part of the income hierarchy. Results also suggest that in general the gaps are higher in the case of those who report being not affected at all by the economic crisis compared to those who report being affected to a large extent by the crisis.

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File URL: http://www.ceswp.uaic.ro/articles/CESWP2014_VI2_BOT.pdf
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Article provided by Centre for European Studies, Alexandru Ioan Cuza University in its journal CES Working Papers.

Volume (Year): 6(2) (2014)
Issue (Month): 2 (July)
Pages: 22-31

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Handle: RePEc:jes:wpaper:y:2014:v:6:i:2:p:22-31
Contact details of provider: Web page: http://cse.uaic.ro

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  1. Indranil Dutta & James Foster, 2011. "Inequality of Happiness in US: 1972-2008," The School of Economics Discussion Paper Series 1110, Economics, The University of Manchester.
  2. Bernard Praag, 2011. "Well-being inequality and reference groups: an agenda for new research," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 111-127, March.
  3. Ruut Veenhoven, 2005. "Inequality Of Happiness in Nations," Journal of Happiness Studies, Springer, vol. 6(4), pages 351-355, December.
  4. Easterlin, Richard A., 2009. "Lost in transition: Life satisfaction on the road to capitalism," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 130-145, August.
  5. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2012. "The Great Happiness Moderation," SOEPpapers on Multidisciplinary Panel Data Research 468, DIW Berlin, The German Socio-Economic Panel (SOEP).
  6. Ulrich Kohler, 2010. "SDLIM: Stata module to rescale variables measured with a limited rating scale," Statistical Software Components S457182, Boston College Department of Economics, revised 19 Oct 2010.
  7. George MacKerron, 2012. "Happiness Economics From 35 000 Feet," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 705-735, 09.
  8. Wim Kalmijn & Ruut Veenhoven, 2005. "Measuring Inequality of Happiness in Nations: In Search for Proper Statistics," Journal of Happiness Studies, Springer, vol. 6(4), pages 357-396, December.
  9. Indranil Dutta & James Foster, 2013. "Inequality of Happiness in the U.S.: 1972–2010," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 393-415, 09.
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